Is there an echo in here?

BOC Governor Mark Carney has made some comments on the Canadian housing market being overheated lately. The first paragraph of this Vancouver Sun article sounds kind of familiar:

The Canadian housing market is overheated, but everything is in place for it to moderate naturally with no further need for government intervention, according to the governor of the Bank of Canada.

It was Patriotz that pointed out this Washington Post article from 2005:

Ben S. Bernanke does not think the national housing boom is a bubble that is about to burst, he indicated to Congress last week, just a few days before President Bush nominated him to become the next chairman of the Federal Reserve.

Of course where those two articles differ is the comment on local markets. Bernanke specifically did not address local market bubbles, where Carney calls them out specifically:

“Given such developments, one cannot totally discount the possibility that some pockets of the Canadian housing market are taking on characteristics of financial asset markets, where expectations can dominate underlying forces of supply and demand,” Carney’s notes say. “The risk is that expectations become extrapolative, prompting the classic market emotions of greed and fear – greed among speculators and investors – and fear among households that getting a foot on the property ladder is a now-or-never proposition.”

But monetary policy is Canada-wide, Carney said.

“We can’t manage monetary policy for a specific housing market or specific province. We’ve got to manage it for the country as a whole to achieve the inflation targets.”

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specialfx3000
specialfx3000
9 years ago

@Surferbob: Bob, look around your neighborhood. They're already around you and more are coming in.

Surferbob
9 years ago

Hello everyone been lurking here since 2008.

Anyhow I've been renting a whole NICE VIEW house in renfrew heights for the last 5 years price 1200 a month, such a good deal.

Long story short landlord tells me their gonna sell 32×100 lot old run down 50s bungalow nice view

He figures he will get 850 000 anybody know if hot Asian money is buying in the renfrew heights area?

fixie guy
fixie guy
9 years ago

61 Anonymouse Says: "No, try again."

Pointless. You know full well 'infinity' was hyperbole and sarcasm but will focus on the literal because you habitually employ the lowest form of reason: rhetoric. Try again.

Ravishing Rick
Ravishing Rick
9 years ago

Cut the music!

Cool down Li Kai….she's mine…. Grrrrrr.

@ paulb. i challenge you to a thumb wrestle to the death for her.

Congratulations… Let me know if you list anything in whalley with a garage big enough for a monster truck. And cement lawn for my pit bull to get back to nature on!

Hit the Barry White music!

ReadyToPop
ReadyToPop
9 years ago

So far this year $22-billion of CMBs have been issued, up from $19-billion by this time last year. That compares to $27-billion in the first six months of 2009, the biggest year ever.

Interestingly, CMBs and Mortgage Backed Securities are about the only sector of Canada’s securitization market that continue to thrive after the turmoil of 2008 and 2009.

How Ottawa encourages banks to boost mortgage lending

Devore
Devore
9 years ago

@paulb: Oh, we missed the 16k inventory party 😉

Absinthe
Absinthe
9 years ago

@paulb: All of my friends will fall over in shock and surprise when I like you on FB!

Anonymous
Anonymous
9 years ago

@patriotz:

Including house prices in “CPI” (I use quotes because it wouldn’t measure consumption per se any more) would produce truly bizarre effects such as old age pensions going down across the country because of a housing bust in major cities.

Sure, but that misses my point, which is that Carney has been using the excuse "inflation is low" for keeping interest rates way too low. And low interest rates are what's been fueling our destructive housing bubble.

So I'm fine with not including house prices in the CPI, but only if we stop using the CPI to set interest rates.

Li Kai Shing
Li Kai Shing
9 years ago

PaulB

Ohhhhhhhhhhhhhhhhhhhh

She H-O-t

Remind me of Jody Foster…

oooooooooooooooooo……I get a real bamboo…

604serf
604serf
9 years ago

congratulations PaulB…

paulb
9 years ago

New Listings 266

Price Changes 146

Sold Listings 121

Total Inventory: 16036

Note:

With the help of my partner, Lauren Phillips, I am officially back in the real estate game. We have a market stats page on our new website where we have charted monthly sales, listings and MOI, and created a weekly snapshot section.

I will continue to post the daily numbers with an inventory total exclusively on this blog.

Please feel free to contact me with any real estate related questions, big or small, and check out my website: http://www.laurenandpaul.ca/ where I have all the extra stats posted. This section will grow once I have more time. And if you like the stats I provide, or think my partner is cute please like our Facebook page! http://www.facebook.com/pages/Metro-Vancouver-Rea

Anonymouse
Anonymouse
9 years ago

@fixie guy: "Projecting a historically unprecedented ‘almost four’ year plateau to infinity?"

No, try again.

Patiently Waiting
Patiently Waiting
9 years ago

NIMBY implies a compromise is possible, even desirable. Even in the case of the rabid opposition to the homeless shelter in Coquitlam, people are meeting in the middle somewhere.

The Promontory owners cannot be met in the middle somewhere. Either they respect other people's rights or leave. Buh bye.

Li Kai Shing
Li Kai Shing
9 years ago

@fixie guy:

OK basement suite dwelling troglodyte.

As you wish……Rent go up next week .

BTW fixie guy….can you fix my pet rock…spay it…..???

900KCrackHouse too..is it drugs or brothel ?

900kCrackHouse
900kCrackHouse
9 years ago

@fixie guy: Agreed, the accent is a total fake. Guess he replaces that other "asian" guy from a while back…, or maybe they are one in the same.

fixie guy
fixie guy
9 years ago

55 Li Kai Shing: You forgot 'your accent', asshole.

fixie guy
fixie guy
9 years ago

52 Anonymouse Says: "… flat for almost 4 years after a huge run-up. I thought that couldn’t happen? Bubbles always pop, etc, etc?"

Projecting a historically unprecedented 'almost four' year plateau to infinity? To avoid suspicion of being an idiot, troll or CREA economist you should consider supporting that contention with a general example. Any example.

Li Kai Shing
Li Kai Shing
9 years ago

Why do you VCI posters engage in cerebral onanism?

Really….

You can pontificate, postulate , extrapolate all you want….it is very binary logic…the vested interests are Shanghaiiing/Lasoing/ and herding people into a Black and white scenario.

Greece (and the other P.I.G.S. countries ) are the models of the NWO

The global banksters have had their fun….time to line them up.

Benefit vs. Cost analysis is pretty obvious.

Is cancer something PETA would protect…..? Nah…..!!!!

Even those retards could be brought in line.

Federal Reserve and their fractional reserve " fiat currency" incubi need to be both prosecuted and assets etc. expropriated.

PERIOD.

I'll be the first to shoot the Mo -Fo's……

Anonymous
Anonymous
9 years ago

@WFT?: …Just heard Doug Porter (BMO economist) on BNN. He said that Vancouver is in a real estate bubble and that Toronto is on the cusp of a bubble…..

Well, I guess we can all thank Doug for that late breaking news. Did he offer any updates on the war in Vietnam?

patriotz
9 years ago

@Anonymouse:

Here's some more accurate data for Edmonton. You call that roller coaster flat?

http://cuer.sauder.ubc.ca/cma/data/ResidentialRea

Anonymouse
Anonymouse
9 years ago

@Anonymous:

"An excellent blog post about the Vancouver riot and housing:"

Nice link – it shows Edmonton prices flat for almost 4 years after a huge run-up. I thought that couldn't happen? Bubbles always pop, etc, etc?

ReadyToPop
ReadyToPop
9 years ago

And if debt growth doesn’t slow down further, expect “Governor Carney to become more vocal in his warnings to households and financial institutions, to potentially push for another round of regulatory moves to curb credit growth, and to possibly raise interest rates more aggressively than he or the economy would like.”

Separately Monday, Finance Minister Jim Flaherty suggested that he is now more comfortable with the health of Canadian housing, saying he is not considering any further action to cool the mortgage market. While there are some hot spots, including Vancouver’s condominium market, it isn’t enough to prompt a change in mortgage rules.

Will Mark Carney push for credit curbs?

Has Flaherty thrown the ball into Carney's court? It'll be interesting to see how this plays out….RTP

Anonymous
Anonymous
9 years ago

An excellent blog post about the Vancouver riot and housing:

http://lindsayrgwatt.com/blog/2011/06/the-real-re

patriotz
9 years ago

@Absinthe:

No way would the banks want higher interest rates. It would increase their cost of capital substantially. All the banks have great wads of high rate resettable preferreds outstanding and they want to call them and reissue new preferreds at lower rates.

Absinthe
Absinthe
9 years ago

@jesse & painted turtle: Any chance that interest rates are the presented possible fix because *banks* would prefer interest rate hikes rather than stricter mortgage lending limits? At 70% ownership, the remaining people who would qualify at 20% down/ 25 years is probably a smaller pool of potential mortgage consumers than who they're hawking to now – interest rates would mean they'd be getting more, theoretically, as rate resets came up and maybe compensate for smaller FTB group?